>> ASIAONE / NEWS / LATEST NEWS / BUSINESS / STORY
Disney signs agreement for Shanghai theme park
Sun, Nov 07, 2010
Reuters

By Melanie Lee

SHANGHAI - The Walt Disney Co has signed an agreement with a Shanghai company for the establishment of a Disneyland theme park in the city, bringing its long-planned park in mainland China closer to fruition.

The deal was reached with Shanghai Shendi Group, which was specifically created for the development of the Disneyland project, the official Xinhua news agency said on Friday.

Disney confirmed the Xinhua statement and said it was still awaiting final approval from China's central government regarding the incorporation of the related joint venture companies and the completion of regulatory procedures.

"For quite some time, we have been involved in discussions with the Shanghai government about building a Disney theme park. We can confirm the statement from the Shanghai government that we have taken another step forward in the approval process," a Disney spokeswoman said in an emailed statement to Reuters.

Shanghai's Disneyland is expected to cover around 4 sq km and cost about 25 billion yuan (S$4.81 billion), Xinhua said. Disney itself gave no further details.

It was not clear what the ownership structure of the park would be like, but state media reported last year that an investment company controlled by the Shanghai municipal government would own a majority stake in the park.

Disney received approval to build a Disney theme park in Shanghai a year ago, but discussions about the specifics have been ongoing and few details have been released publicly.

Disney has long sought to build in Shanghai, a wealthy city of about 20 million people that is ringed by the prosperous Yangtze River Delta, home to tens of millions more potential visitors.

It was less enthusiastic about building near Beijing, which has fewer large population centres in the immediate vicinity.

Disney's foray into the China market has been mixed so far, with its Hong Kong Disneyland park reporting a loss last year.

Bookmark and Share
 
 
STORY INDEX
 
  Disney signs agreement for Shanghai theme park
   
 
  8 ways to take a quick nap at work
   
 
  Obama wins India business; controversy over Pakistan
   
 
  US business chiefs see Obama trade boost in India
   
 
  US-China step back from tussle on economic policy
   
 
  Mickey Mouse moves a step closer
   
 
  US regulators close two banks, 2010 total now 141
   
 
  Canada central banker warns of financial instability
   
 
  Coca-Cola sees bubbling prospects in Malaysia
   
 
  China, France join forces for world monetary reform
   
We welcome contributions, comments and tips.
a1admin@sph.com.sg
Search AsiaOne: